[Seeking-Feedback]B.Protocol's risk sub-dao economic audit report

Proposal details

Project Name

B.Protocol’s risk sub-dao.

Project Type

Economic risk audit report for (future) IoTex lending markets.

Proposal Description

B.Protocol is a backstop liquidation protocol that helps make lending platforms more stable, live for over a year with over $100m TVL.
Recently it spawned a risk analysis sub-dao that developed a unique mathematical model to stress test lending market performance and to reason about optimal lending market parameters, such as LTV and liquidation incentives.

The model specializes on early stage blockchains who still didn’t reach high level of DEX liquidity, and incorporates the delay in capital flow from bigger chains to the chain we analyse.

A rigorous audit report benefits both the current and future lending markets on IoTeX, and the users.
The benefits for lending platforms that are launching on IoTeX is a secure and optimised recipe to reason about their market parameters. This will help make existing platforms more secure and capital efficient, and could help attract more platforms in the future.
Users of the IoTeX ecosystem benefit from such public report as it clearly articulates the economic risks in participating in such markets. And can give them a sense of confidence when the lending markets properly behave.

Giving the recent rekt incidents in lending markets (e.g., ICHI cascading liquidations and other bad debt incidents) it is imperative for blockchain ecosystem to protect their users and help founders who launch on their chain.


  • Milestone 1:
    • Engaging with IoTeX for a risk analysis audit
    • Duration: Upon grant approval
    • Deliverables: Allocate 2-3 researchers from the risk sub-dao to work on an audit report.
    • Funds request: 25,000 USD
  • Milestone 2:
    • Duration: 4 weeks
    • Deliverables: Provide a public audit report.
    • Funds request: 25,000 USD

Total funds requested

50,000 USD

About your Team

B.Protocol was founded by Dr. Yaron Velner, who is a veteran DeFi builder, previously CTO and co-founder of Kyber Network, and a founding team member in the WBTC initative.

Ori Cohen is leading B.Protocol’s risk sub-dao. Has over 20 years of algo-trading experience in crypto and non crypto markets.
Previously CTO and co-founder of Efficient Frontier — one of the biggest crypto market making companies .


The risk sub-dao mathematical model and example report

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=== Please add Milestone Reports below ===

B-protocol is a very good backstop protocol for lending DEFI project. B-protocol mainly serves the mainstream platform of ETH. Does B-protocol hope to expand to more chains in the future? Would like to know your marketing plan.


B.Protocol is actually going live over IoTeX next week (contracts are already deployed, and running final checks now).

But the risk analysis is some orthogonal, and projects who are not integrated with B.Protocol would also benefit from having a public risk analysis.
The two main benefits for them are (1) better idea on how to configure the risk parameters for lending platforms in IoTeX; and (2) users will have access to an independent third part risk audit which could potentially increase the credibility of the platforms who properly set their risk parameters.